By
Ochereome Nnanna
PRESIDENT
Muhammadu Buhari owes us apologies for the latest hike from N86.50k to
N145 of the official pump price for Premium Motor Spirit (PMS) announced on
Thursday last week by his Deputy Minister of Petroleum, Dr. Emmanuel Kachikwu.
First, he must apologise
to Nigerians, on behalf of himself, his political party, the All Progressives
Congress, APC, his foremost apologist, Professor Tam David-West, Labour and the
hired “civil society” groups who truncated the deregulation of the downstream
sector of the petroleum industry in January 2012. Second, he must also
apologise to his predecessor, ex-President Goodluck Jonathan, who lost his
post-electoral “honeymoon” period early in 2012 when he stuck out his neck in
an attempt to lay to rest, once and for all, the bogey of fuel scarcity and its
attendant high cost and human suffering which have trailed the nation for
nearly thirty years.
After maligning the
Otuoke-born lecturer, he went back to implement a policy that Jonathan would
have carried out four years ago if not for irresponsible and unpatriotic
opposition. Whenever the deregulation of this sector is contemplated, people
always say the timing is wrong without telling us when the timing will ever be
right. Certainly, the timing for this steep hike is wrong. It comes so soon
after the equally steep hike in the cost of electricity tariffs which the
Federal Government through its Power, Works and Housing Minister, Babatunde
Fashola, openly approves of.
It comes at a time
when thousands of people are losing their jobs and most employers cannot pay
the salaries of their workers because of the parlous economic situation brought
about by low oil prices, the crash in the value of the naira and the inability
of the Buhari administration to tackle them. To top it all, Labour is priming
for a new national minimum wage of between N56,000 to N90,000. Now that the
official price of petrol has been nearly doubled, who knows the amount that
Labour will now ask for? If ever there was a right time for the deregulation of
the downstream sector, the year 2012 was it. We had just emerged unscathed from
the worldwide economic meltdown of 2008/2009. By 2012 our Brent crude was
selling for $114.26 per barrel, a trend that was generally sustained until
toward the end of 2014 when the tide of transitional political was in full
swing.
Unlike now when
economic activities are low, poverty rate is higher than ever and most
investors have fled, there was money in the system then. The economy was even
becoming increasingly “dollarised” as a result of oil-fed liquidity in the
system. In fact, it was shortly after this that a review of the nation’s Gross
Domestic Product terms showed that Nigeria had emerged as the largest economy
in Africa and the continent’s number one investors’ destination. Nigeria could have weathered the shock of
deregulation much more easily than now. But the opposition would have none of
it. Labour unions went on strike.
In Lagos ,
some so-called “activist” groups were sponsored by some
political interests to stage their “Occupy Nigeria ” gigs in the Freedom Square ,
Ojota, Lagos ,
which was actually more of a noisy musical jamboree. Former President Jonathan
was called the dirtiest names in the world. Soldiers eventually had to be
drafted to Ojota to avoid the growing involvement of miscreants, hoodlums and
Area Boys who began targeting people and their property. After about a week of
national standstill, Jonathan called off the plan to deregulate. He went back to
subsidy payment.
The nation paid
through the nose. Between 2012 and today, we lost over four trillion naira to a
subsidy regime that was blighted by unprecedented graft. This would have been
avoided if we had implemented the policy back then. Unfortunately for Buhari,
he is now saddled with the grim burden of grappling with the evil day he and
his cohorts postponed by opposing deregulation under the Jonathan regime. The
opposition vehemently posited that there was nothing like subsidy. Buhari
himself was severally on record saying the subsidy was a “scam”. When he won
the presidential election, he vowed to probe the “scam”. Yet he continued to
pay subsidies on assumption of office, thus perpetuating the “scam”?
Professor Tam
Davis-West, a former Minister of Petroleum under Buhari’s military regime who
has become his acolyte and voluntary media megaphone, granted several
interviews and insisted that Buhari would reduce the price of petroleum to N40
per litre. While inaugurating his presidential campaign council, General
Buhari, waxing populist, promised that under an APC government “no Nigerian
would go hungry and angry”. I remember an interview with Vanguard in which
Mallam Nasir El Rufai, a former Minister of the Federal Capital Territory under the General Olusegun Obasanjo
presidency said, and I quote him: “If
another regime was in power, let us assume that General Buhari was the
president of Nigeria ,
he would not withdraw the subsidy.
He will fix the
problem. He will audit who is taking the money in the subsidy, who is paying
what, how the money multiply (sic) three times in one year and fish out the
thieves and deal with them”.
One year into his
four-year mandate, Buhari has realised that all that glitters is not gold. We
are yet to hear about the “probe” of the “scams” he promised. Prof. David-West
has gone mute. El Rufai has since climbed on the back of Buhari to become the
Governor of Kaduna State. We expected David-West to teach Buhari (the Minister
of Petroleum) and Kachikwu (his Minister of State) the magic formula of making
petrol price to come down to N40. Or better still, Buhari could have appointed
the Professor who will be 80
in a couple
of months as his Special Adviser on Petroleum to actualise this wonderful feat.
Instead, Kachikwu told us that all his learning in Ivy League schools where he
made first class did not include how to wave a magic wand to produce results.
David-West is hiding somewhere while we are made to pay N145. Funny, Asiwaju
Bola Tinubu, who was widely believed to have sponsored the “Occupy Nigeria ” party in Ojota in 2012 to truncate the
deregulation, was among the first to jump forward and tell Nigerians that the
pain of price hike is “necessary”.
If there is any scam, it is the Buhari
administration and the party that brought him to power that have perpetrated it
against Nigerians. This is yet evidence that they obtained power through false
pretences. One of such was the promise to make the Naira equal to the US
Dollar. Today, the official rate is static at N198/$1, while the black market
rate remains well over N330/$1. Experts gloomily predict that with the fuel
importers now free to look for foreign exchange from anywhere to import, the
Naira is likely to head towards the N500/$1 mark! One year later, we are yet to
see anything they did differently and better than the Jonathan administration,
especially in the energy sector. We are waiting for the apologies, and hope
that Nigerians will be wiser when politicians come with sweet but empty
promises next time.
*Mr. Nnanna is an influential columnist with a Nigerian national newspaper
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